Analyst Downgrades: Gilead Sciences, Inc., Skyworks Solutions Inc, and Stericycle Inc

Analysts downwardly revised their ratings and price targets on Gilead Sciences, Inc. (GILD), Skyworks Solutions Inc (SWKS), and Stericycle Inc (SRCL)

Apr 29, 2016 at 10:07 AM

Analysts are weighing in on biotech stock Gilead Sciences, Inc. (NASDAQ:GILD), Apple Inc. (NASDAQ:AAPL) supplier Skyworks Solutions Inc (NASDAQ:SWKS), and healthcare interest Stericycle Inc (NASDAQ:SRCL). Here's a quick roundup of today's bearish brokerage notes on GILD, SWKS, and SRCL.

GILD is down 5.6% to $91.52, after the company reported quarterly earnings below estimates, due largely to lower sales of its hepatitis C drug. Maxim lowered its rating on the security to "hold" from "buy," while at least seven other brokerage firms have cut their price targets to a range between $96 and $125. Today's drop sees Gilead Sciences, Inc. losing a recent foothold at its 100-day moving average and disappointing bulls in the options pits. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity holds a 10-day call/put volume ratio of 2.82 -- in the 79th percentile of its annual range.

SWKS received price-target cuts from at least nine brokerages after the company's fiscal second-quarter revenue came in just shy of analysts' predictions, while current-quarter projections also came in lower than expected. The lowest target, from Cowen and Company, came in at $76, which still marks a 10% premium over Skyworks Solutions Inc's current price, with the shares down 4% today at $68.92. The shares have been slumping in recent weeks, but could be getting support at their 80-day moving average. Options traders have been betting heavily against the security lately, but outside of the options pits, analysts have kept the faith, with 14 out of 15 still giving SWKS a "buy" or better recommendation.

SRCL is plummeting 18.6% to $99.05 -- fresh off a new three-year low of $91.05 -- after the company's disappointing first-quarter earnings prompted RBC, Stifel, and Raymond James to downgrade the equity to the equivalent of a "hold." Jefferies, Baird, Goldman Sachs, RBC, and Stifel all lowered their price targets on Stericycle Inc, which is now off almost 18% year-to-date. Short sellers could be cheering today's fall, though. Short interest shot up by more than 21% during the two most recent reporting periods and now represents 8.1% of SRCL's available float, or nearly nine sessions' worth of trading, at the stock's average daily volume.

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